Chapter 2 Flashcards
Determine the supply chain performance
Supply chain drivers
The drivers of supply chain includes:
-Inventory
-Transportation
-Facilities
-Information
-Sourcing
-Pricing
It consists of all raw materials; work in process, and finished goods within a supply chain
Inventory
It involves moving inventory from one point in the supply chain to another point
Transportation
The six basic modes of transportation are:
-Air
-truck(road)
-rail
-ship
-pipeline
-electronic transportation (the newest mode for music, documents, etc.)
It is a place where inventory is stored, manufactured or assembled
Facilities
It consists of data and results of analysis regarding inventory, transportation, facilities, customer orders, customers, and funds
Information
It is the choice of who will perform a particular supply chain activity, such as production, storage, transportation, or the management of information
Sourcing
Determines how much a firm will charge for the goods and services that it makes available in the supply chain
Pricing
Barriers of Supply Chain Management
-lack of top management support
-non-aligned strategic and operating philosophies
-inability or unwillingness to share information
-lack of trust among supply chain members
-unwillingness to share risks and rewards
-inflexible organizational systems and processes
-cross-functional conflicts
-inconsistent or inadequate performance measures
-resistance to change
-lack of training for new mindsets and skills
Scope of Supply chain activities
-sourcing and procurement
-production scheduling and manufacturing
-order processing
-inventory management
-warehousing
-customer service
-distribution
-reverse logistics
The one who used the Four P’s model of marketing mix to define their business strategy for product specification, delivery and promotion
Marketing managers and strategists
The term “marketing mix” became popular after _________ published his 1964 article, The concept of the marketing mix.
Neil H. Borden
Who proposed a Four P classification in 1960?
McCarthy
Four most important P’s of marketing mix:
-Price
-Product
-Promotion
-Place
The amount a customer pays for the product
Price
Specification and branding
Product
all of the communication that a marketer may use in the marketplace, advertising, public relations, personal selling and sales promotion
Promotion
the location where a product can be purchased, distribution channel
Place
Is a useful model that identifies three key features of e-business that are enabled through technology, as an extension of the traditional 4P’s marketing model
Marketspace Model
Is the two-way exchange of information and ideas with the customer through an on-line interface, which enhances the richness of customer relationships and gives rise to new paradigms of product design and customer service, such as internet forums
Interactivity
Components of Inventory
-Cycle Inventory
-Safety Inventory
-Seasonal Inventory
Average amount of inventory use to satisfied demand between the receipt of supplier shipments
Cycle Inventory
It helps counter uncertainty
Safety Inventory
Build up or counter predictable seasonal variability in demand
Seasonal Inventory
Components of Facilities
-Role
-Location
-Capacity
Firm decide
Flexibility and dedicate capacity
Role
Deciding where the facility locate and execute the supply chain
Location
Companies decide to know the facility to know its function
Capacity
Components of Sourcing
-In house/Outsource
-Supplier Selection
-Procurement
-Pricing & Economies of Scale
Most significant outsourcing decision
In house/Outsource
Obtaining goods with the supply
Procurement
“Cast all your anxiety to GOD because he cares for you”
1 Peter 5:7
Is a key business function that is responsible for acquisition of required materials, services, and equipment
Purchasing
